VW Halts ID.4 Production Due to Unresolved Leaky Door Handle Issue

VW Pauses ID.4 Production Due to Door Handle Faults

VW ID.4

Production Halt and Employee Furlough

Production of the ID.4 is paused after recalling 98,606 vehicles for door handle faults.
About 200 employees will be furloughed, with each receiving 80% of their base pay.
VW has not provided a timeline for when a solution to the issues will arrive.

Issue with Door Handles

Volkswagen will pause production of the all-electric ID.4 at its plant in Chattanooga, Tennessee, from September
23 as it looks to fix an ongoing issue impacting tens of thousands of vehicles. Since as early as April 2023,
VW has been battling with door handles that are prone to water ingress and can open without any input. The brand
has issued three recalls for the ID.4 to try and resolve the fault but it has still yet to develop a
comprehensive fix. This, combined with an ongoing stop-sale of the car, means it no longer makes sense to keep
building the electric crossover.

Impact on Sales and Dealers

The ID.4 was most recently recalled for the door handle issue earlier this month. This latest recall involves
98,606 ID.4s. VW has received 135 warranty claims between June 2023 and May 2024 related to the water ingress
issue. US sales of the ID.4 have dropped significantly this year, in part due to the stop-sale. In the second
quarter, VW sold just 5,690 ID.4s, a 15% drop compared to Q2 2023 and the second consecutive quarter of
year-over-year decline. VW has confirmed it will pause production of the ID.4 until it has a solution. It
hasn’t said how long the period of downtime will be but says it is furloughing approximately 200 employees at
the site. The carmaker is also exploring ways to support dealers as work on the remedy continues.

Employee Support

“While we address the issue, we are focused on doing right by our employees, dealers, and consumers through this
disruption,” the carmaker confirmed. “Approximately 200 employees in Chattanooga will be furloughed beginning
Sept. 23 and we are supporting them by supplementing unemployment from the state of Tennessee so they will still
receive 80 percent of their base compensation and will continue to be covered by all current benefits during
this time.”

Conclusion

VW’s decision to pause ID.4 production highlights the seriousness of the ongoing door handle issue. With no
comprehensive fix in sight, the carmaker is prioritizing the safety and satisfaction of its customers. The
impact on sales and dealers is significant, but VW is committed to finding a solution and supporting its
employees during this challenging period.